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SRG

Snam BIT:SRG Stock Report

Last Price

€4.96

Market Cap

€16.2b

7D

-2.5%

1Y

1.6%

Updated

26 Jun, 2022

Data

Company Financials +
SRG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health1/6
Dividends5/6

SRG Stock Overview

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy.

Rewards

Trading at 10.3% below our estimate of its fair value

Earnings are forecast to grow 2.02% per year

Earnings grew by 35.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record


Snam Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Snam
Historical stock prices
Current Share Price€4.96
52 Week High€5.61
52 Week Low€4.62
Beta0.47
1 Month Change-9.42%
3 Month Change-3.69%
1 Year Change1.64%
3 Year Change13.48%
5 Year Change29.98%
Change since IPO67.57%

Recent News & Updates

Jun 03
Snam (BIT:SRG) Is Increasing Its Dividend To €0.16

Snam (BIT:SRG) Is Increasing Its Dividend To €0.16

Snam S.p.A.'s ( BIT:SRG ) dividend will be increasing to €0.16 on 22nd of June. This will take the annual payment from...

Shareholder Returns

SRGIT Gas UtilitiesIT Market
7D-2.5%-1.5%1.1%
1Y1.6%6.0%-15.6%

Return vs Industry: SRG underperformed the Italian Gas Utilities industry which returned 6% over the past year.

Return vs Market: SRG exceeded the Italian Market which returned -15.6% over the past year.

Price Volatility

Is SRG's price volatile compared to industry and market?
SRG volatility
SRG Average Weekly Movement3.0%
Gas Utilities Industry Average Movement4.0%
Market Average Movement5.1%
10% most volatile stocks in IT Market7.2%
10% least volatile stocks in IT Market3.3%

Stable Share Price: SRG is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SRG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19413,468Stefano Venierhttps://www.snam.it

Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. The company operates through Natural Gas Transportation, Liquefied Natural Gas (LNG) Regasification, and Natural Gas Storage segments. It provides natural gas transportation and dispatching services with approximately 32,700 kilometers of high-and medium-pressure gas pipelines; and owns and manages LNG regasification plants.

Snam Fundamentals Summary

How do Snam's earnings and revenue compare to its market cap?
SRG fundamental statistics
Market Cap€16.23b
Earnings (TTM)€1.51b
Revenue (TTM)€3.42b

10.8x

P/E Ratio

4.7x

P/S Ratio

Is SRG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRG income statement (TTM)
Revenue€3.42b
Cost of Revenue€833.00m
Gross Profit€2.59b
Other Expenses€1.08b
Earnings€1.51b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)0.46
Gross Margin75.63%
Net Profit Margin44.12%
Debt/Equity Ratio180.1%

How did SRG perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SRG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRG?

Other financial metrics that can be useful for relative valuation.

SRG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.5x
Enterprise Value/EBITDA12.6x
PEG Ratio5.3x

Price to Earnings Ratio vs Peers

How does SRG's PE Ratio compare to its peers?

SRG PE Ratio vs Peers
The above table shows the PE ratio for SRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.2x

Price-To-Earnings vs Peers: SRG is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does SRG's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

Price-To-Earnings vs Industry: SRG is expensive based on its Price-To-Earnings Ratio (10.8x) compared to the European Gas Utilities industry average (10.8x)

Price to Earnings Ratio vs Fair Ratio

What is SRG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: SRG is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Share Price vs Fair Value

What is the Fair Price of SRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRG (€4.96) is trading below our estimate of fair value (€5.53)

Significantly Below Fair Value: SRG is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: SRG is poor value based on its PEG Ratio (5.3x)

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Future Growth

How is Snam forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

2.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRG's forecast earnings growth (2% per year) is above the savings rate (1.7%).

Earnings vs Market: SRG's earnings (2% per year) are forecast to grow slower than the Italian market (10.3% per year).

High Growth Earnings: SRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: SRG's revenue (4% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: SRG's revenue (4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SRG's Return on Equity is forecast to be low in 3 years time (15.4%).

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Past Performance

How has Snam performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

13.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRG has high quality earnings.

Growing Profit Margin: SRG's current net profit margins (44.1%) are higher than last year (39.9%).

Past Earnings Growth Analysis

Earnings Trend: SRG's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: SRG's earnings growth over the past year (35.1%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: SRG earnings growth over the past year (35.1%) exceeded the Gas Utilities industry 31.4%.

Return on Equity

High ROE: SRG's Return on Equity (19%) is considered low.

Discover strong past performing companies

Financial Health

How is Snam's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SRG's short term assets (€1.8B) do not cover its short term liabilities (€4.1B).

Long Term Liabilities: SRG's short term assets (€1.8B) do not cover its long term liabilities (€11.5B).

Debt to Equity History and Analysis

Debt Level: SRG's net debt to equity ratio (158.1%) is considered high.

Reducing Debt: SRG's debt to equity ratio has increased from 164.2% to 180.1% over the past 5 years.

Debt Coverage: SRG's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: SRG's interest payments on its debt are well covered by EBIT (16.6x coverage).

Balance Sheet

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Dividend

What is Snam current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

5.28%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SRG's dividend (5.28%) is higher than the bottom 25% of dividend payers in the Italian market (1.71%).

High Dividend: SRG's dividend (5.28%) is in the top 25% of dividend payers in the Italian market (5.19%)

Stability and Growth of Payments

Stable Dividend: SRG's dividend payments have been volatile in the past 10 years.

Growing Dividend: SRG's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.9%), SRG's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54%), SRG's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure

CEO

Stefano Venier (58 yo)

0.17

Tenure

Mr. Stefano Venier has been Manager of Administration, Finance and Control at Gruppo Hera since 2010. Mr. Venier serves as Chief Executive Officer and Director at Snam S.p.A. since April 27, 2022. Mr. Veni...

Leadership Team

Experienced Management: SRG's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: SRG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Snam S.p.A.'s employee growth, exchange listings and data sources

Key Information

  • Name: Snam S.p.A.
  • Ticker: SRG
  • Exchange: BIT
  • Founded: 1941
  • Industry: Gas Utilities
  • Sector: Utilities
  • Implied Market Cap: €16.231b
  • Shares outstanding: 3.27b
  • Website: https://www.snam.it

Number of Employees

Location

  • Snam S.p.A.
  • Piazza Santa Barbara, 7
  • San Donato Milanese
  • Milan
  • 20097
  • Italy

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.